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Introduction to Macroeconomics
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Mary Ellen is the newly appointed CEO of a company that packages cereal on an assembly line. Her staff has told her that the output the firm produces, given the number of workers employed, indicates that some workers may be shirking. According to efficiency wage theory, what should she do?
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If an unemployed person quits looking for work, other things equal, which statement best describes the changes in the labour statistics?
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How is a college student who is not working or looking for a job counted?
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How does Statistics Canada define the unemployment rate?
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How do sectoral shifts in the economy affect unemployment?
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Geoff loses his job in May and decides to spend his summer fishing. Assuming that other things remain the same, what happens to the unemployment rate?
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Figure 9-2
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David is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Paul is a lawyer. He has looked for work for some time, but no law firms are hiring. Which of the following best describes the nature of their unemployment?
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Chris is looking for work after school, but everywhere he fills out an application he is told that so have lots of others. Marco has an accounting degree. Several firms have made him offers, but he thinks he might be able to find a firm where his talents could be put to better use. Which category of unemployment do Chris and Marco belong to?
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Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What is a likely explanation for his decision?
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